May 15, 2012
TurboSonic Technologies Reports Third Quarter Operating Results
For Immediate Release
Waterloo, Ontario, Canada
May 15, 2012
|Three Months Ended||Nine Months Ended|
|US Dollars||US Dollars|
|(Loss) before Income Taxes||$||(354,881)||$||(98,327)||$||(1,450,131)||$||(1,888,901)|
|(Recovery of) provision for Income Taxes||$||(28,179)||$||(63,228)||$||764,533||$||(475,651)|
|Basic (Loss) Per Share||$||(0.02)||$||(0.00)||$||(0.12)||$||(0.09)|
|Weighted Average Number of Shares Outstanding||18,554,112||18,554,112||18,554,112||16,533,873|
Revenue decreased by 22% to $3.1 million in the three months ended March 31, 2012 over the corresponding period ended March 31, 2011. A loss before income taxes of $354,881 was recorded for the quarter compared to a loss before income taxes of $98,327 in the corresponding period ended March 31, 2011. Our backlog of orders at March 31, 2012 was $10.4 million compared with $8.9 million at March 31, 2011.
Our net loss for the three and nine months ended March 31, 2012 resulted in part from the effect of a non-cash deferred income tax adjustment of $750,000 attributable to a reduction in the valuation of our US deferred tax assets. This adjustment, by means of an increase to our valuation allowance, does not reduce the total US tax loss carryforward of $1,972,980 available to offset future taxes.
Our financial statements for this quarter have been prepared on a going concern basis. However, our ability to continue as a going concern is dependent on achieving a profitable level of operations, and our ability to secure additional financing; there can be no certainty with respect to the timing or receipt of such financing.
Edward Spink, TurboSonic CEO, commented, "While we have been frustrated by delays in order bookings, we expect a stronger fourth quarter in both orders and revenue recognition. We are actively pursuing additional sources of financing to provide working capital.”
TurboSonic Technologies (www.turbosonic.com) designs and markets air pollution control technologies to industrial customers worldwide. Its products help companies in the Cement and Mineral Processing, Ethanol & Biofuels, Metals & Mining, Petrochemicals, Power Generation, Pulp & Paper, Waste Incineration, and Wood Products industries meet the strictest emissions regulations, improve performance and reduce operating costs.
This press release contains statements that are forward-looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties, such as: our dependence on environmental regulation to drive sales; the concentration of our revenues among a small group of customers who may vary from year to year; our ability to secure additional financing; economic downturns; and other factors that may negatively affect our customers’ demands for our products. These risks and uncertainties could cause actual results to differ materially from historical results or those we anticipate. In evaluating these statements, you should specifically consider the risks discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2011 and other reports or documents that we have filed from time to time with the SEC. Our statements are based upon information known to us as of the date this report is filed with the SEC, and we assume no obligation to update or alter our forward-looking statements within this report, whether as a result of new information, future events or otherwise, except when required by applicable federal securities laws.
Ed Spink, CEO
519-885-5513 ext. 214
|TurboSonic Inc.||TurboSonic Inc. Italian Branch|
|550 Parkside Drive, Suite A-14||Via IV Novembre, 92|
|Waterloo, ON, Canada N2L 5V4||Bollate, Milano, 20021, Italy|
|Tel: 519-885-5513||Tel: 39-02-38305384|
|Fax: 519-885-6992||Fax: 39-02-33301943|